Prohibition on Quantitative Restrictions (EU Exit) Regulations 2020

Baroness Ritchie of Downpatrick Excerpts

Tuesday 8th December 2020 Grand Committee

[Baroness Ritchie of Downpatrick (Non-Afl) [V]]

My Lords, I thank the Minister for his explanation of these regulations. I declare my interest as a member of the Common Frameworks Scrutiny Committee of your Lordships’ House.

I understand that this very technical statutory instrument, which deals with England, Scotland and Wales, is to end the application of directly effective rights that flow from EU treaty provisions that prohibit the imposition of quantitative restrictions, such as administrative or regulatory requirements, which restrict free movement of non-harmonised goods within the EU or between the EU and Switzerland or the EU and Turkey.

At the end of the transition period, from 1 January 2021, GB will have its own regulatory regime for goods and the intention of this instrument is apparently to ensure that there is no barrier to diverging from EU rules should GB seek to do so after the end of the transition period. As I understand it, it is a protective instrument.

In that regard, will the Minister spell out the nature and the number of meetings and discussions with the devolved Administrations in Scotland and Wales? Can he advise what preparations have been made and what further support funding will be provided for businesses? They have probably been ravaged this year by Covid and because of the uncertainty as we advance towards the end of the transition period. They need help, because many of them are competing with Amazon and the online businesses of the UK.

Furthermore, will common standards for trading be agreed via the common frameworks process and will that be put on a statutory basis? I know there is no reference to that within the statutory instrument, but I appreciate that that could be a direct, or maybe indirect, consequence of this.

Furthermore, I understand that EU rights will continue to apply in Northern Ireland by virtue of the protocol. On that, I am pleased that a “deal” was reached in the joint committee about a couple of hours ago on Northern Ireland border checks that will provide a solution for businesses and, I hope, result in the withdrawal of those controversial clauses in the United Kingdom Internal Market Bill. If the Minister is not able to provide detail and clarity on that today—I suppose that it does not relate directly to this statutory instrument—perhaps he could do so in writing. I hope it will be possible to achieve a free trade agreement that prevents customs friction and provides an implementation period, because that is a vital to all businesses in Northern Ireland or Great Britain.

Obviously, I have read the House of Commons debate on this issue and what was said in your Lordships’ Secondary Legislation Scrutiny Committee, which referred to how the statutory instrument could impact on the flow of goods between Northern Ireland and GB. The Minister and the noble Lord, Lord True, have insisted throughout this process and during debates on the United Kingdom Internal Market Bill that there will be unfettered access for goods between Northern Ireland and Britain. The Bill makes provision for that unfettered access for qualifying goods and for the application of market access principles of mutual recognition and non-discrimination. Can the Minister define those qualifying goods? What are they? Businesses trading in Britain, and those trading in Northern Ireland, would like to know what that definition is. What are the qualifying goods in that regard?

It is interesting that an amendment was tabled on Report on the Trade Bill, which should have been reached last night but was not, that sought to ensure that there would be no discrimination in respect of goods and services coming from Northern Ireland into Great Britain. I want assurances from the Minister: will this draft statutory instrument, which deals specifically with England, Scotland and Wales, ensure that there will be no discrimination of goods and that there will be unfettered access for goods and services from Northern Ireland to GB? Maybe he could go a little further and explain the processes involved in that.

We do not want to see a threat to existing supplies of any type of goods within England, Scotland and Wales. The same applies to Northern Ireland. I hope the statutory instrument provides the pathway to do just that. I realise it is highly technical and simply protects the market to allow divergence from EU rules to take place, but in so doing it is important that businesses are protected and that there is no diminution of any type of rights, or any type of damage to businesses, in the short and long term.